FACTBOX-Canada launches auction of prized 700 MHz airwaves

Jan 14 (Reuters) - Canada kicked off an auction of prized
wireless airwaves on Tuesday, but the last-minute withdrawal of
main upstart Wind Mobile a day earlier suggests the country's
largest phone companies could obtain the limited resource more
cheaply than previously thought.

The 700 MHz airwaves, which are being used in the United
States to build high-speed networks, are valued for their
ability to penetrate buildings and travel long distances.

Here are some facts about the auction:

The process divides Canada into 14 regions, with seven
spectrum blocks in each. But four of those blocks are most
coveted because they align with U.S. airwaves, meaning many of
the latest devices already work on the frequency. Canada's three
largest operators - BCE Inc's Bell, Rogers
Communications Inc, and Telus Corp - are
allowed to acquire only one of these prime blocks each.

Industry Canada, the government body charged with running
the auction, says it will not provide any information on bids
until up to five days after the complicated process ends.
Similarly constructed auctions elsewhere have recently taken
between two and seven weeks.

A recent auction of similar frequencies in Australia raised
A$2 billion ($1.8 billion), much less than anticipated, as some
airwaves remained unsold.

Ottawa last March set minimum opening bids at C$897 million
($826 million). An auction of higher-frequency airwaves in 2008
brought in C$4.25 billion.
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